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German cabinet agrees to phase out fossil fuel heating systems from 2024

The German cabinet has approved an amendment to the Building Energy Act requiring that almost all newly installed heating systems should run on 65% renewable energy from 2024. Authorised alternatives to fossil fuel heating comprise heat pumps that run on renewable electricity, district heating, electric heating or solar thermal systems; under certain conditions, there is an option of "H2-ready" gas heaters (gas heaters that can be converted to 100% hydrogen). Under the new law, all buildings must be heated in a climate-neutral manner using only renewable energies from 2045.

The plan is part of Germany’s ambition to become climate neutral by 2045 as the construction sector was responsible for 15% of the country’s emissions in 2021. Around three-quarters of the existing building are currently heated with systems using fossil fuel. Heating and hot water account for more than 40% of Germany’s natural gas consumption.

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